Part 3 &4

P22A-45A Preparing a financial budget-schedule of cash receipts, schedule cash 22A payments, cash budget Knobbles Company's budget committee provides the following information 056 December 31, 2015, account balances: Cash Accounts Receivable Merchandise Inventory Accounts Payable Salaries and Commissions Payable $23,000 20,000 20,000 1,500 2,850 February 80,000 81,600 41,000 4,080 7,000 2,000 600 400 2,200 Budgeted amounts for 2016: January Sales Purchases Commissions Expense Salaries Expense Rent Expense Depreciation Expense Insurance Expense Income Tax Expense 40,200 4,000 7,000 2,000 600 400 2,200 Requirements 1. Prepare the schedule of cash receipts from customers for January and February 2016. Assume cash receipts are 60% in the month of the sale and 40% in the month following the sale. 2. Prepare the schedule of cash payments for purchases for January and February 2016 Assume purchases are paid 60% in the month of purchase and 40% in the month following the purchase. 3. Prepare the schedule of cash payments for selling and administrative expenses for January and February 2016, Assume 25% of the accrual for Salaries and Commissions Payable is for commissions and 75% is for salaries. The December 31 balance will be paid in January. Salaries and commissions are paid 70% in the month incurred and 30% in the following month. Rent and income tax expen are paid as incurred. Insurance expense is an expiration of the prepaid amount. 4. Prepare the cash budget for January and February 2016. Assume no financing too ace